Saudi’s Acwa Power and Italy’s natural gas operator Snam signed an MoU to explore collaboration on a green hydrogen supply chain from Saudi Arabia to Europe, according to a statement. The two sides will be “evaluating the development of an ammonia import terminal in Italy to facilitate the delivery of green hydrogen through the SoutH2 Corridor.”

ICYMI- Member countries in the SoutH2 Corridor initiative, including Tunisia and Algeria, inkeda joint declaration of intent for the project last week.

Both Italy and Acwa eyeing Tunisia for green hydrogen: Acwa is exploring the development of a USD 6.2 bn renewables-powered hydrogen project, with a capacity of 200k tons, which will be exported to Europe via the SoutH2 Corridor. Italy’s Enel Green Power is reportedly working on a pilot project for green hydrogen production in Tunisia, Italian news agency Aki reported last week, citing Director of Enel’s Green Energy and Thermal Generation division Salvatore Bernabé.

ON THE FINANCING SIDE OF THINGS-

Acwa also signed two agreements with state-owned Italian financial group Sace for credit facilities to green projects in Central Asia, according to a press release published on Sunday. The first agreement entails providing a USD 100 mn credit line to Acwa with a commitment for collaboration with Italian companies in return. The pair will also evaluate up to USD 500 mn in support to facilitate Italian exports.

Not Sace’s first Saudi rodeo: Sace also signed an MoU with the Saudi Electricity Company to collaborate on investments, specifically for sustainable and renewable energy projects, under which Sace could provide credit guarantees and facilitate EPC and O&M services from Italian companies.

IN OTHER GREEN HYDROGEN NEWS-

#1- Mubadala-owned Spanish oil player Moeve is moving ahead with its flagship green hydrogen project, after Spain’s move not to extend an energy windfall tax initially stalled investments, CEO Maarten Wetselaar told Reuters on Wednesday. The company — formerly known as Cepsa — plans to invest up to EUR 8 bn in low-carbon energy, with its first 400 MW hydrogen plant in Huelva set for completion by 2027 and a 2 GW target for 2030. Wetselaar called the tax decision a “responsible” move that will encourage industry investment.

Moeve likes Europe for investment: “We continue to see the south of Spain as the best place in Europe to make green hydrogen,” Wetselaar added, citing strong demand from Europe as it moves away from Russian energy imports. The EU has a broader target to produce 10 mn metric tons of renewable hydrogen by 2030, Reuters reported.

#2- Saudi + Greece to explore hydrogen link: Saudi Arabia and Greece will conduct a feasibility study for a hydrogen corridor connecting Saudi production to European Markets via Greece, alongside their existing interconnection project, according to a statement on Wednesday. No details were disclosed for the project but a Greek delegation to the Kingdom on energy issues will be organized as part of the expanded cooperation.

#3- Amea’s Egypt 1 GW green hydrogen project is advancing, with feasibility studies underway and negotiations ongoing with potential offtakers, primarily from Europe due to lower transportation costs, CTO Mahabir Sharma told The National on Tuesday. The project was announced in 2022 with an initial capacity of 500 MW.

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